Miele is the most admired company in Germany

The household appliance manufacturer Miele, which is recognized and admired all over the world and is wholly owned by the almost 80 descendants of the founder, enjoys an excellent general condition, but above all the very best reputation among executives in Germany.

“Our brand stands for solidity and reliability,” says Managing Director Markus Miele, 50. People have complete confidence in the quality of his products, and that “pays off, even and especially in difficult economic times”. The income of the Westphalian heroes’ ensemble has recently increased slightly to 4.16 billion euros, which corresponds to a new best value at Miele in terms of natural laws. The biggest product launch to date since the foundation stone was laid in 1899 was also successfully pulled through, to put it somewhat casually.

For him, Miele is the epitome of “reliability, longevity, coupled with outstanding quality,” is the celebratory conclusion of Martin Fassnacht, economist and marketing expert at the WHU near Koblenz. The professor hardly knows of a company of this size class that is “still managed so successfully by the founder’s descendants in the fourth generation”.

This is also how the 1,482 representatively selected board members, managing directors and managers who BILANZ asked about the reputation of companies operating in Germany saw it.

At Miele, the descendants of two families come into their own: not only the Mieles, but also the Zinkanns, two clans who, as you will see, get along well. The Mieles, for example, have worked out a small lead in the distribution of shares (51.1 percent) and would have every reason to feel a little satisfaction about that, but instead they allow themselves the real greatness of not letting the Zinkanns feel it – although they would not be able to do anything anyway with their narrow majority at the shareholders’ meeting: because important decisions require the approval of 60 percent, and even unimportant ones are made by consensus with a sense of community and status. Since 1899 there has been little cause for complaint.

In addition to Markus Miele, one of the founder’s great-grandchildren, the second member of the five-strong management board is also employed: Reinhard Zinkann, 60. Good-naturedly, the two of them theoretically only agreed to have one vote each, like their three colleagues, but in practice that doesn’t help them much , as you can imagine. Portions are thicker than water, so to speak.

“Quality comes before costs,” Mr. Zinkann once said. A beautiful movement, almost as beautiful as the second in Beethoven’s Seventh. Unfortunately, the imperative to give priority to quality means that Miele machines almost never break.

The customer is happy to pay more for the Gütersloh quality class, but then has to experience that his washing machine lasts longer than he does himself. This is not easy for the manufacturer either: Because most people only buy a washing machine or a dishwasher instead of one in their lifetime four or five. This is why Miele set the lifespan of its items at 20 years straight some time ago. After two decades, “sometimes people want something new,” asserted Markus Miele unashamedly.

That some people don’t just want a new Miele appliance, but the whole company at once – you hear that again and again. Thin as bones, financial investors regularly knock on the company’s door, but are politely whipped out of court by Markus Miele and Reinhard Zinkann: “Most private equity people,” Markus Miele said in the BILANZ interview, “just leave their business cards there and say: , “If you change your mind, we’ll talk.’ People who are really well informed don’t even call us – they know the answer.”

Of course, an IPO is not being considered either: “We can cope wonderfully with our capitalization and are also prepared for future generations.”

Economic success, products that are almost indestructible and at the same time impressive with their shape also aesthetes, a trustworthy, hard-wearing personality at the top of the company or even two of them and finally the advantage of being active in the right, scandal-free industry and not necessarily in the food or financial business: As Germany’s Most Admired Companies 2019 shows, this usually guarantees a good, occasionally an extremely good reputation.

The Trumpf company from Ditzingen is also a case for the history books. Last year, ranking only in 20th place, so to speak, the laser specialist has worked its way up and down to the second level in the BILANZ list. Here, too, the founding family is still in charge, it is a lively company, superior to the competition almost in violation of the statutes.

Nobody builds better punches, benders, nibblers, closers, milling machines, formers, presses and guillotine shears and lasers for cutting and drilling or welding and labeling than the men from the south-western Neckar basin in the Strohgäu at the transition to the so-called Langen Feld.

Humanities scholar and company boss Nicola Leibinger-Kammüller, 59, enjoys respect in her community as well as in her guild. Most recently, your company has found its normal form again, which means it is in top form, cheering sales to an all-time high of 3.6 billion euros and boosting operating profit by more than half to over half a billion euros.

As Miele appreciates as a good neighbor, fair business partner and respected employer, Trumpf, with more than 14,500 employees, has at least retained a certain informal, non-ceremonial atmosphere. Although times are threatening to become uncomfortable for mechanical engineering – long-term traffic jams and standstills are expected – “nobody gets laid off”, says Ms. Leibinger, “unless things get really bad”.

How seriously the family takes its responsibility as an entrepreneur and its commitment to the social market economy is also shown by the fact that in the past it has also refunded dividends that have already been paid out when it was a question of securing jobs.

At that time, the car industry also had similarly excellent preference and admiration values ??as Miele or Trumpf today: Porsche, Daimler, BMW, Audi or VW – they automatically belonged to the strong club of the local economy, were among the most sought-after employers for decades, poused by politics, flattered by the media.

No other industrial product aroused such wild, fertile fantasies in the minds of its viewers as the automobile, no other illuminated its manufacturers and subsequently its buyers in such a way that promoted its image. Make cars, or at least made people.

But the diesel scandal, the initially awkward efforts at e-mobility, new competitors like Tesla, the multi-billion dollar development of autonomous driving and the prospect that many young people would still like to wiggle around in their cars, but not necessarily one anymore want to own helped give the industry’s luster a matte polish.

The Bavarian Motor Works, Porsche and just recently Daimler made it into the top 50 most admired companies in the country. BMW was able to make up 16 places and Porsche even 30 places. With the recent, abrupt change in leadership, the Bavarians in particular have expressed their desire for radicalism, which reignited belief in old strength; the share price is also slowly picking up again after the company had lost a tenth of its value in the past twelve months. The love of the Germans for their favorite toy, the car, is still alive.

Not only the car manufacturers have to fear for the deference of German executives. Their suppliers are also in a low mood: Brose (20th), Festo (22nd) and Webasto (35th), Dürr (92nd) or Hella (104th) – their respect values ??fell rapidly. Large formats like Continental (78th) also atone for the guild’s deadlocked strategy.

The best addresses and most pleasing phenomena in the German corporate world include:

• Fourth-placed Carl Zeiss AG, a manufacturer of quality semiconductors and optoelectronics that is popular with everyone and is owned by a foundation that presents itself as family-like as the Mieles, the Zinkanns or the Leibingers. In turbulent times, a foundation promises stability, support and security;

• The company Heraeus, which was included in the survey for the first time and was immediately placed eighth, an ancient precious technician and metal dealer that emerged from the pharmacy Zum Weißen Einhorn in Hanau in 1851 and is also at home in photovoltaics, sensor technology and special lighting technology. The name Heraeus, which sounds somewhat authoritative or like a brain surgeon who only practices with local anesthesia, inspires great respect all over the country. In particular, the former praeceptor Jürgen Heraeus, 83, tolerated no resistance, especially not from his competitors. It has remained so to this day.

The world brands PayPal (7th), Netflix (17th) and Google (19th), which also lead the tables in their sectors, as well as local global powerhouses such as SAP (33rd), are among the 100 most respectable companies operating in Germany. Allianz (37th), Beiersdorf (38th) and the Otto Group (66th), a quartet that has gained a lot of respect in recent years and has gained a number of places.

As we do every year, we politely remind you that the image itself is only a prejudice, and point out that all companies that did not make it into the 123 most respected in the country and the title Germany’s Most Admired Companies are allowed to wear can start improving their reputation tomorrow.

If you do it wisely and decently, have enough money and patience and a bit of luck, you will (probably) succeed with certainty.